Crypto ETF Surge Faces Hurdle as US Treasury Yields Rise

The crypto market is experiencing a surge in demand for Bitcoin ETFs, but this trend may be short-lived due to rising US Treasury yields.

In the last four sessions, $1.61 billion has flowed into regulated demand channels through US spot Bitcoin ETFs, according to Farside Investors.

This influx of funds coincides with a 2.973% real yield offered by the US Treasury on nearly three-decade-old securities, which is significantly higher than six months ago.

The market will be closely watching the upcoming $183 billion in two-, five-, and seven-year Treasury note auctions from August 25 to 27, as well as the long real yield remaining near 2.97%.